Austerity is a blight on recovery, say City bosses
Three quarters of City bosses believe the Government's austerity agenda is damaging the UK's hopes of recovery, according to new research.
A survey of some of the UK's leading chief executives of publicly listed organisations or venture capital-backed firms in industries including financial services, IT, pharmaceuticals, property and communications found three out of four chief executives said cost-cutting could not be seen as a route to growth.
The findings come as Chancellor George Osborne is under increasing pressure over his austerity plans, which he claims give the Bank of England room to keep interest rates low and stimulate the economy through printing money.
Mr Osborne's strategy faced criticism last week from Nobel Prize winning economist Paul Krugman. Bank of England rate-setters will debate whether to pump an extra £50 billion into the economy this week after an alarming plunge in activity for the UK's manufacturers in May.
Three quarters of business leaders who were asked to name the top enablers of growth said leadership was crucial, with only a quarter believing cost-cutting is a successful strategy.
"Four years ago, it was all about trimming budgets and curbing spending, but business leaders are now sending a clear message to the Government that UK Plc cannot cut its way to growth," said Campbell Macpherson, chief executive of corporate advisory firm Campbell Macpherson & Associates.
The sea change contrasts with a high-profile public letter endorsed by the bosses of 35 major companies, including the chief executives of Next and Mothercare, in October 2010 that claimed Mr Osborne's austerity measures "improve business and consumer confidence".
But official figures show the economy has been flat for the past 18 months. Further weakness is expected in the current quarter as Europe's debt crisis worsens and an extra day off for the Queen's Diamond Jubilee celebrations hits output.
Sales of the tablet are set to fall again, say analysts
Met Police confirm there was a 'minor disturbance' and that no-one was arrested
George Lucas criticises the major Hollywood film studios
Does Chris Grayling realise what a vague concept he is dealing with?
Trend which requires crisps, a fork and a strong stomach is sweeping Mexico's streets
Parties threaten resort's image as a family destination
I Am Bread could actually be a challenging and nuanced title
- 1 Indian footballer Peter Biaksangzuala dies after injuring spine doing somersault celebration
- 2 Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
- 3 Banksy arrest hoax: Internet duped by fake report claiming that the street artist's identity has been revealed
- 4 Drink alcohol and eat meat to improve male fertility - but cut down on coffee, studies suggest
- 5 Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
Banksy arrest hoax: Internet duped by fake report claiming that the street artist's identity has been revealed
'Russian submarine spotted' by Swedish military off coast of Stockholm
Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver allegedly kicks gay couple off for kissing
Amal Alamuddin calls for the return of the Elgin Marbles from Britain: 'Injustice has persisted for too long'
Lord Freud: Tory welfare minister apologises after saying disabled people are 'not worth’ the minimum wage
iJobs Money & Business
£18 - 23k + Benefits: Guru Careers: We are seeking a Customer Service Executiv...
£60 - 65k + Benefits: Guru Careers: We are seeking a ASP.NET Web Developer / ....
£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...
£27000 - £32000 Per Annum: Clearwater People Solutions Ltd: Our large charity ...